DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 307 Engrossed 2017 Regular Session Lyons
Abstract: Requires a tax clearance from the Dept. of Revenue for the issuance or renewal of a tax
resale certificate and the approval of certain state procurement contracts.
Proposed law provides that in order for a person to receive a sales tax resale certificate from the
Dept. of Revenue, a tax clearance certificate shall be required to confirm that the applicant is current
in the filing of all applicable tax returns and reports, and in payment of all taxes, interest, penalties,
and fees owed to the state and collected by the Dept. of Revenue.
Present law establishes requirements for the approval of procurement contracts by the Office of State
Procurement.
Proposed law changes present law by adding a requirement that before the office of state
procurement can approve a contract for professional, consulting, or social services, or for the
purchase of food, supplies, or major repairs, a tax clearance certificate shall be required to confirm
that the proposed contractor is current in the filing of all applicable tax returns and reports, and in
payment of all taxes, interest, penalties, and fees owed to the state and collected by the Dept. of
Revenue.
Proposed law provides that a tax clearance certificate shall not be required for purposes of bidding
or the solicitation of a procurement contract.
Proposed law requires that the chief procurement officer provide the secretary of the Dept. of
Revenue (secretary) a list of the prospective contractors that require a tax clearance for approval of
a procurement contract. The secretary is then required to provide the chief procurement officer with
a signed tax clearance for each applicant indicating whether the proposed contractor is current in
filing all tax returns and in payment of all taxes, interest, penalties, and fees owed to the state of La.,
excluding items either under formal appeal pursuant to present law or being paid in compliance with
the terms of an installment agreement.
Proposed law provides that in instances where an assessment against a proposed contractor has
become final and collectible by distrant and sale, such proposed contractor shall not be approved for
a procurement contract until such time as the proposed contractor has filed the applicable tax returns
and paid or made arrangements to pay the delinquent tax liability and the secretary notifies the chief
procurement officer of the payment or arrangement to pay. Present law provides for the circumstances under which the secretary may disclose certain taxpayer
information to other state agencies.
Proposed law changes present law by adding an exception for a request made by the chief
procurement officer, for purpose of the proposed law, specifically concerning whether a prospective
contractor is, as required by proposed law, current in the filing of all applicable tax returns and
reports and in the payment of all taxes, interest, penalties, and fees owed to the state and collected
by the Dept. of Revenue. The information disclosed shall be used solely for the purpose of
determining whether the contract may be approved by the Office of State Procurement.
Proposed law exempts from the requirements of proposed law procurements in the following
circumstances:
(1)A contract approved by the Office of State Procurement that involves an emergency or a sole
source procurement.
(2)A contract for construction, maintenance, or repair of highways, or a contract financed by the
U.S. government.
(3)A contract for an institution of higher education or other agency of higher education if the
chief procurement officer has delegated authority to procure contracted services using private
grant funds or federal funds.
Proposed law authorizes the secretary to promulgate rules and regulations in accordance with the
Administrative Procedure Act as may be necessary to implement the provisions of proposed law.
Proposed law applies prospectively only.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 39:1624(A)(10), and R.S. 47:1508(B)(41) and 1678)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Restrict applicability of proposed law to applications for sales tax resale certificates and
certain state procurement contracts which require the approval of the Office of State
Procurement.
2. Add an exception to the confidentiality provisions of present law concerning the
disclosure of certain taxpayer information by the secretary of the Dept. of Revenue to the
chief procurement officer for purposes of proposed law. 3. Establish the procedure for the exchange of information between the chief procurement
officer and the secretary of the Dept. of Revenue regarding proposed contractors and tax
clearance certificates.
4. Provide that a tax clearance certificate shall not be required for purposes of bidding or
solicitation of a procurement contract.
5. Authorize rulemaking.